20180628-中国银河国际证券-China_Galaxy_A-Share_Morning_Comments_3页_304kb

报告摘要

China Galaxy A-Share Morning Comments Summary (June 28, 2018)

Core Content

The China Galaxy A-Share Morning Comments from June 28, 2018, provide an overview of the Chinese stock market performance and investment recommendations across various sectors. The report highlights the ongoing market correction, the impact of oil prices, and specific stocks that are recommended for investment.

Market Overview

SHCOMP (Shanghai Composite Index):
- Opened lower and experienced a short rebound.
- Closed at 2,813.2 with a -1.10% decline.
- Hit a low of 2,798 during the session.
- Technical indicators suggest potential bottoming, but weak fundamentals and market sentiment limit the rebound scale.
SZSE Comp (Shenzhen Component Index):
- Closed at 9,168.7 with a -1.83% drop.
- The index continued its downward trend.
ChiNext:
- Closed at 1,546.2 with a -1.19% decline.
- Slightly above its 5-day moving average.
CSI 300:
- Closed at 3,459.3 with a -2.03% drop.
HSI (Hang Seng Index):
- Closed at 28,356.3 with a -1.82% decline.
HSCEI (Hang Seng China Enterprises Index):
- Closed at 10,879.2 with a -2.16% drop.
Market Turnover:
- Remained at low levels, indicating weak investor activity.

Sector Analysis

IPP (Electricity & Power)

China's electricity demand in May showed strong growth, exceeding market expectations.
Recommended Stocks:
- Coal-fired power generation companies with potential for earnings recovery: Huadian Power International (600027.CH), Huaneng Power International (600011.CH), Baolihua New Energy (000690.CH), An Hui Wenergy (000543.CH).
- Hydropower leaders: China Yangtze Power (600900.CH).
- Additional recommendations: SDIC Power Holdings (600886.CH), Sichuan Chuantou Energy (600674.CH), Guizhou Qianyuan Power (002039.CH), Guangxi Guiguan Electric Power (600236.CH).

Electronics

The sector is trading 1SD below its long-term average, suggesting undervaluation.
Recommended Stocks:
- Consumer electronics leaders with earnings improvement: Luxshare Precision (002475.CH), Lens Technology (300433.CH), Holitech Technology (002217.CH), O-film Tech (002456.CH).
- Semiconductor leaders with strong fundamentals: Jiangsu Changjiang Electronics Tech (600584.CH), Tianshui Huatian Technology (002185.CH), TongFu Microelectronics (002156.CH).
- Additional attention: Zhonghua Semiconductor (002129.CH), Jingsheng Mechanical & Electrical (300316.CH), GigaDevice Semiconductor (603986.CH), Ninestar Corp (002180.CH).

Machinery

The current oil price trend supports the recovery of the oil & gas sector.
Recommended Stock: Jereh Oilfield Services (002353.CH), a leading cracking equipment company in China.

Top Gainers and Losers (CSI300)

Top 5 Gainers (18.06.27)

Jiangsu Hongdou Industrial (600400) – 3.69
Shanghai Challenge Textile (002486) – 3.70
Innuovo Technology (000795) – 4.68
Shandong Lipeng (002374) – 4.03
Sunvim Group (002083) – 5.57

Top 5 Losers (18.06.27)

Ingenious Ene-Carbon New Materials (000511) – 0.98
China United Travel (600358) – 6.09
Xinjiekou Department Store (600682) – 20.30
Dongjiang Environmental (002672) – 13.57
Xilong Scientific (002584) – 7.37

Recent Research Reports

Strategy H2 2018 Outlook: Focus on identifying stocks with attractive value and growth potential amid market reshaping.
Healthcare: Recommend sub-segment leaders with low valuations and strong growth potential.
Media H2 2018 Outlook: Emphasize content as the key growth driver in the post-traffic era.
Quantitative Analysis: Note increased exposure amid market declines.
Bonds: Discuss the impact of RRR cuts on liquidity risks and global liquidity trends.
TMT: Address the limited impact of Sino-US trade conflicts.
Property: Highlight potential growth in sales volume and value due to de-inventory efforts.
Strategy Updates: Advises caution in the short term but notes more opportunities than risks in the medium to long term.

Disclaimer and Risk Statement

The document is issued by China Galaxy International Securities (Hong Kong) Co., Ltd. to institutional clients.
Information is based on sources believed to be reliable, but no warranty is given regarding its accuracy or completeness.
The report does not constitute an offer or solicitation to buy or sell any securities.
Investors are advised to consult independent financial advisers due to the risks involved.

Disclosure of Interests

China Galaxy International may have financial interests in the companies mentioned, potentially equal to or exceeding 1% of their market capitalization.
Certain directors, officers, and employees may be affiliated with the mentioned companies.
The firm may have participated in financing transactions, provided services, or hold positions in the securities of the mentioned companies.
It may have received or be seeking investment banking mandates from the subject companies.